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Question: Since the new direct materials cost per unit is $4.50 and the contribution margin ratio will remain the same at 40%, we can set up the following equation:
0.4 = 1 - ($4.50 / X) $4.50 / X = 0.6 X = $4.50 / 0.6 = $7.50
How can I transfer the equation above on excel??
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